Raghuram Rajan wanted to be RBI Governor, I honoured that commitment: Manmohan Singh

Raghuram Rajan became RBI governor in 2013 and last month said he would not opt for a second term.

Prime Minister Manmohan Singh with RBI Governor Raghuram Rajan at a meeting in New Delhi. (Source: PTI/File)

Raghuram Rajan was handpicked in 2008 to be advisor to the Prime Minister and later wanted to be considered for the job of RBI governor, then PM Manmohan Singh has revealed.

Rajan became RBI governor in 2013 and last month said he would not opt for a second term.

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Asked about the challenges involved in lateral entry in the government, Singh said (in an interview conducted before Rajan announced his exit):

“…We managed to bring in Raghuram Rajan. I spotted him and first engaged him as an honorary advisor to the Prime Minister. Then when the position of the chief economic advisor fell vacant, we got him there and he told us that when the time for the RBI governorship comes, he should be considered for the job. I was able to honour that commitment.

P Chidambaram agreed with me, and that appointment turned out to be a creative one.”

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